NI 43-101 Technical Report Las Palmas Property

NINI 4343--101101 TechnicalTechnical ReportReport on the Las Palmas Property

71°37'17.04"W And 31°14'18"S Coquimbo, Choapa Province ChileChile

Gran Pacific Minerals S.A.

November 24 2012

By Derrick Strickland P. Geo. Las Palmas Property NI 43-101 November 2012 Chile Table of Contents

1 SUMMARY ...... 4 2 INTRODUCTION...... 5 2.1 TERMS REFERENCE...... 6 3 RELIANCE ON OTHER EXPERTS...... 7 4 PROPERTY DESCRIPTION AND LOCATION...... 8 4.1 LAND TENURE IN CHILE...... 9 4.1.1 Exploration Concessions...... 9 4.1.2 Exploitation Concessions ...... 15 4.2 ROYALTIES, ENCUMBRANCES...... 16 4.2.1 Royalties...... 16 4.3 WATER RIGHTS ACCORDING CHILEAN LAW...... 16 4.4 LEGAL AGREEMENTS ...... 17 4.5 ENVIRONMENTAL LIABILITIES ...... 17 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY17 6 HISTORY...... 18 6.1.1 October 1904 Hartmann...... 18 6.1.2 September, 1927 Baeza, A ...... 18 6.1.3 September, 1931...... 18 6.1.4 March 14, 1932 Gonzalez, A...... 18 6.1.5 August 2012, Garcia...... 20 7 GEOLOGICAL SETTING AND MINERALIZATION ...... 20 7.1 REGIONAL GEOLOGY ...... 20 7.2 PROPERTY GEOLOGY ...... 23 8 DEPOSIT TYPE ...... 25 9 EXPLORATION...... 27 10 DRILLING ...... 27 11 SAMPLE PREPARATION, ANALYSIS AND SECURITY ...... 27 12 DATA VERIFICATION...... 28 13 MINERAL PROCESSING AND METALLURGICAL TESTING...... 29 14 ADJACENT PROPERTIES ...... 29 15 OTHER RELEVANT DATA AND INFORMATION ...... 33 16 INTERPRETATION AND CONCLUSIONS...... 35 17 RECOMMENDATIONS ...... 36 18 REFERENCES...... 37 19 DATE AND SIGNATURE PAGE ...... 39 20 SIGNATURE PAGE...... 40

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List of Figures

Figure 1: Regional Property Location ...... 10 Figure 2: Regional Property Location ...... 11 Figure 3: Keyla Uno Block...... 13 Figure 4: Keyla Dos Block...... 14 Figure 5: Historical Plan for India Central ...... 19 Figure 6: Regional Geology ...... 22 Figure 7: Property Geology...... 24 Figure 8: Geological Model ...... 27 Figure 9: Author Collected Samples ...... 30 Figure 10: Rock Pile Outside Adit ...... 32 Figure 11: Recent Road Cut ...... 32 Figure 12: Onsite Ball Mill ...... 32 Figure 13: Visible Gold from Hand Milling...... 32 Figure 14: Adit on Site...... 32 Figure 15: Property Monument ...... 32 Figure 16: Las Palmas ...... 34

List of Tables

Table 1: Terms Of Reference ...... 6 Table 2: Claim List ...... 12 Table 3: Field description of the samples ...... 31 Table 4: Select Assays Author Samples...... 31

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1 Summary This report was commissioned by Gran Pacific Minerals S.A, having offices in Santiago Chile and was prepared by Derrick Strickland, P.Geo. As an independent geologist, the author was asked to undertake a review of the available data and recommend (if warranted) specific areas for further work on the Las Palmas Property.

The Las Palmas Propertyis located in IV Region Coquimbo, Choapa Province, Chile. The property is situated 80 km north of the city of Los Vilos, 156 km south of the city of Coquimbo-La Serena and 295 km northwest of the city of Santiago, the capital of Chile. The approximate coordinates for the centre of the project at a latitude and longitude of 71°37'17"W and 31°14'18"S. The project is between 40 masl and 250 masl.

The property consists of 2 non-contiguous surveyed blocks totalling 158 hectares. The property is made up of two distinct blocks Keyla Uno and Keyla Dos. Keyla Uno consists of 20 surveys exploitation concessions, currently owned by Mr. Juan Nelson Flores Carvajal. In an agreement dated October 10, 2012 between Juan Nelson Flores Carvajal and Alfredo Rovaldo Manfredi Aguirre Keyla Uno and Keyla Dos can be purchased for USD $2,500,000.

The property is in the Coastal Cordillera of central Chile the Eastern and Western Series are traditionally distinguished within the pre-Andean coastal accretionary belt as units of contrasting tectonic setting. Throughout central Chile, the Eastern Series structurally overlies the Western Series. The overlying Eastern Series first formed by frontal accretion to this accretionary wedge, and the underlying Western Series subsequently by basal accretion to the base of a late Palaeozoic to Triassic subduction complex. Both series consist dominantly of metagreywacke and metapelite, interpreted as continent-derived, turbidite successions. Oceanic crust-derived rocks such as metachert, metabasite and serpentinite are largely absent in the Eastern Series, but typically occur as intercalations within the Western Series.

Las Palmas property is underlain in Carboniferous sandstones and quartzites. Southern part of the property a creek occurs. The current owner built an access road on the south end of the property. The access road exposed outcrops of silicified sandstones, which are strongly fractured and abundant presence of hematite and limonite black oxides. The central part of the property is alluvial cover.

Based on the projection of India vein, it appears the historical India Central claim and the India North claims are potentially on the property which the subject of this report. The India vein zone approximately parallels the Chamuscada. On the India Central claim the zone has one vein of 47" (120 cm) width. It has been developed by four adits to a depth of 330' (100 m), and length of 390' (120 m).

The available data suggests that much of the 100-year history of Keyla Dos has been focused on extraction of gold from the ground. The exact amounts are not known, this could be due to the lack of records or the lack of significant gold, and it is unknown at this point. The data provided does not show any type of geological investigations or detailed analysis of the property to date.

The area warrants a detailed geological mapping that would include; structural analysis, satellite, air photo interpretation, and establishing concession boundaries. The mapping should include an aggressive sampling program including any of the open adits to date at an estimated cost of USD $150,938.

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2 Introduction

This report was commissioned by Gran Pacific Minerals S.A, having offices in Santiago Chile and was prepared by Mr. Derrick Strickland, P.Geo. As an independent geologist, the author was asked to undertake a review of the available data and recommend (if warranted) specific areas for further work on the Las Palmas Property.

In the preparation of this report the author utilized information provided by the company as well as mineral assessment work reports from the Las Palmas Property area that have been published on www.sedar.com. A list of reports, maps, and other information examined by the author is provided in the Section 18 of this report.

The exploration results and the history of exploration on this Las Palmas Property are discussed in detail in Sections 6 of this report.

The author was retained to complete this report in compliance with National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”) and the guidelines in Form 43-101 F1. The author is a “qualified person” within the meaning of National Instrument 43-101. This report is intended to be filed with the securities commissions in all the provinces of Canada except for Quebec.

The author has no reason to doubt the reliability of the information provided by Gran Pacific Minerals S.A.

This technical report is based on the following sources of information: • Discussion with Gran Pacific Minerals S.A.; • Inspection of the Las Palmas Property area; • Additional information obtained from public domain sources; and • The regional geology is taken directly from Ring et al 2012

The technical report was written and assembled in Vancouver, Canada during the month of November2012.

As of the date of this report, the author is not aware of any material fact or material change with respect to the subject matter of this technical report that is not presented in this report, which the omission to disclose would make this report misleading.

In accordance with the NI 43-101 guidelines, Mr. Derrick Strickland, P.Geo., visited the Las Palmas Property on November 4th, 2012. During the visit, Mr. Strickland reviewed aspects of previous work in the region and on the property and possibilities for future exploration programs. This visit allowed Mr. Strickland to ascertain the geological and structural controls of the known anomalies located on the Las Palmas Property, which represent possible exploration targets.

Mr. Strickland was given access to relevant data. During the visit, Mr. Strickland collected six (6) independent samples that were subsequently submitted for analysis.

5 Las Palmas Property NI 43-101 November 2012 Chile 2.1 Terms Reference Table 1: Terms Of Reference

Units of Measure Abbreviation Units of Measure Abbreviation Above mean sea level amsl Micrometre (micron) μm Annum (year) a Miles per hour mph Billion years ago Ga Milligram mg Centimetre cm Milligrams per litre mg/L Cubic centimetre cm3 Millilitre mL Cubic metre m3 Millimetre mm Day d Million M Days per week d/wk Million tonnes Mt Days per year (annum) d/a Minute (time) min Dead weight tonnes DWT Month mo Degree ° Ounce oz Degrees Celsius °C Parts per billion ppb Degrees Fahrenheit °F Parts per million ppm Diameter ø Percent % Gram g Pound(s) lb Grams per litre g/L Power factor pF Grams per tonne g/t Specific gravity SG Greater than > Square centimetre cm2 Hectare (10,000 m2) ha Square inch in2 Gram g Square kilometre km2 Grams per litre g/L Square metre m2 Grams per tonne g/t Thousand tonnes kt Greater than > Tonne (1,000kg) t Kilo (thousand) k Tonnes per day t/d Kilogram kg Tonnes per hour t/h Kilograms per cubic metre kg/m3 Tonnes per year t/a Kilograms per hour kg/h Total dissolved solids TDS Kilometre km Total suspended solids TSS Kilometres per hour km/h Week wk Less than < Weight/weight w/w Litre L Wet metric ton wmt Litres per minute L/m Yard yd Metre m Year (annum) a Metres above sea level masl Year yr Metres per minute m/min Inch “ Metres per second m/s Foot ‘ Metric ton (tonne) t

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The term gram/tonne or g/t is expressed as “grams per tonne” where 1 gram/tonne = 1 ppm(part per million) = 1000 ppb (part per billion). Other abbreviations include ppb = parts perbillion; ppm = parts per million; oz/t = ounce per short ton; Moz = million ounces; Mt = million tonne; t = tonne (1000 kilograms); SG = specific gravity; lb/t = pound/ton; and, st = short ton(2000 pounds).Dollars are expressed in United States of America currency (USD $) or Chilean currency (CH$)unless otherwise noted. Base and certain industrial metal and mineral prices are stated as USD $per tonne (USD $/t), precious metal prices are stated in USD $ per troy ounce (USD $/oz) and Uranium and certain industrial metal and mineral prices are stated in USD $ per pound (USD $/lb).Unless otherwise noted, Universal Transverse Mercator (“UTM”) coordinates are provided in the datum of NAD83, Zone 19 South.

3 Reliance on Other Experts

The information, opinions and conclusions contained herein are based on:

• Information available to the writer at the time of preparation of this report; • Assumptions, conditions, and qualifications as set forth in this report; • Data, reports, and other information supplied by Gran Pacific Minerals S.A.; and • Other third party sources.

For the purpose of the report, the author has reviewed and relied on ownership information provided by Gran Pacific Minerals S.A.

The author has relied on clarification of the title ownership for the Keyla Uno and Keyla Dos by using the online system http://catastro.sernageomin.cl/pag1_restringido.php thatis maintained by the National Geology and Mining Department of Computer Science. However, the limited research by the author does not constitute a legal opinion as to the ownership status of the Keyla Uno and Keyla Dos Exploitation concessions.

The author has relied on the legal opinion provided by Luis Fernando Ureta Álamos. A lawyer hired by Gran Pacific Minerals S.Awith offices at 105 Of.1309, Providencia, Santiago, Chile.

As of the date of this report, the author is not aware of any material fact or material change with respect to the subject matter of this technical report that is not presented herein, or which the omission to disclose could make this report misleading.

7 Las Palmas Property NI 43-101 November 2012 Chile 4 Property Description and Location

The Las Palmas Property is located in IV Region Coquimbo, Choapa Province, Chile. The property is situated 80 km north of the city of Los Vilos, 156 km south of the city of Coquimbo-La Serena and 295 km northwest of the city of Santiago, the capital of Chile. The approximate coordinates for the centre of the project at a latitude and longitude of 71°37'17"W and 31°14'18"S. The project is between 40 masl and 250 masl (Figure 1).

The property consists of 2 non-contiguous surveyed blocks totalling 158 hectares. The property is made up of two distinct blocks Keyla Uno and Keyla Dos. Keyla Uno consists of 20 surveys exploitation concessions (see Table 2and Figure 2and Figure 3 for details). Keyla Dos consists of 34 surveyed exploitation concessions (see Table 2and Figure 2 and Figure 4 for details).

The author has relied on the legal opinion provided by Luis Fernando Ureta Álamos. A lawyer with offices at 105 Of.1309, Providencia, Santiago, Chile.

Luis Fernando Ureta Álamos reviewed the legal documents regarding the mining properties Keyla Uno 1 to 20 and Keyla Dos 1 to 34 which are both identified as Las Palmas, Commune of Canela, Fourth region, Coquimbo, Chile, belonging to Mr.Juan Nelson Flores Carvajal, with address in Los Sauces 452, Poblacion Nueva Esperamza, IIIapel IV region. According to Luis Fernando Ureta Álamos: "which is correct and consistent with the law in accordance with the laws established in the Mining Code” and is based on the documents reviewed below:

The documents reviewed For Keyla Uno 1-20: • Copy of the mining statement dated August 25, 2009 made in the Court of Los Vilos. • Copy of the publication of the mining statement in the Mining Official Bulletin of lllapel. • Copy of the registration of the mining statement, page 742, number 821, in the Registry Book of mining discoveries or the year 2009 in the Mining Registry Service of IIIapel. • Copy of payment of proportional taxes. • Copy of application of measurement • Copy of the measurement's registration • Copy of the deed of measurement • Constituent sentence of the mining concession. • Copy of the mining patents payment. • Proof of payments. • Measurement plats

The documents reviewed For Keyla Dos 1-34: • Copy of the mining statement dated August 25, 2009 made in the Court of Los Vilos. • Copy of the registration of the mining statement, page 743, number 822, in the Registry Book of mining discoveries or the year 2009 in the Mining Registry Service of IIIapel. • Copy of payment of proportional taxes. • Copy of application of measurement • Copy of the measurement's registration • Copy of the deed of measurement • Constituent sentence of the mining concession. • Copy of the mining patents payment. • Proof of payments. • Measurement plats

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4.1 Land Tenure in Chile

Chile’s current mining and land tenure policies were incorporated into law in 1982 and amended in 1983 with regulations promulgated in 1986. They were established to secure the property rights of both domestic and foreign investors and to stimulate development of mining in Chile. The state owns all mineral resources, but exploration and exploitation of these resources is permitted through mining concessions that are granted by the courts according to the law. There are two types of concessions, exploration (Concesión de Exploración) and exploitation (Concesión de Explotación). Concessions are defined by UTM coordinates representing the centre point of the concession and its dimensions (in metres) in N-S and E-W directions.

4.1.1 Exploration Concessions

Exploration concessions grant the concession holder the right to explore the ground for a two- year period and can be renewed for an additional two-year period provided, however, that the size is reduced by 50%. The minimum size of a concession is 100 ha and the maximum is 5,000 ha. Yearly title maintenance payments average about USD $800 per concession per year. However, if the annual taxes are not paid the concessions can remain in good standing until the publishing of an auction list of concessions in tax arrears. This list of concessions with unpaid taxes is usually published on or about July 1st. Once published, the taxes on these concessions are doubled.

Exploration concessions are allowed to overlap with pre-existing ones; however, the underlying concessions always take precedence provided they are properly maintained. This makes it advisable for a company to have an employee or consultant reviewing bulletins to ensure that the company’s concessions remain in good standing.

The process for securing rights to an exploration concession is as follows:

A petition (called a Pedimento) requesting an exploration concession is first submitted to the Mining Court in the local jurisdiction. Once accepted, the court sends the application to the National Geological and Mining Service (Sernageomin), which must then issue the Mining Court a technical report approving or rejecting the concession application on technical grounds. If the report is positive, the Pedimento is presented to the Mining Court and it receives an ROL number and presentation date. If the concession application is rejected, the person making the original application has eight days to correct the application.

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Figure 1: Regional Property Location

Las Palmas Property

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Figure 2: Regional Property Location

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Table 2: Claim List

Area Area Area Name Name Ha Ha Ha Keyla Dos ‐1 2 Keyla Dos ‐21 2 Keyla Uno ‐1 3 Keyla Dos ‐2 2 Keyla Dos ‐22 2 Keyla Uno ‐2 3 Keyla Dos ‐3 2 Keyla Dos ‐23 2 Keyla Uno ‐3 4 Keyla Dos ‐4 2 Keyla Dos ‐24 2 Keyla Uno ‐4 4 Keyla Dos ‐5 2 Keyla Dos ‐25 2 Keyla Uno ‐5 5 Keyla Dos ‐6 2 Keyla Dos ‐26 2 Keyla Uno ‐6 5 Keyla Dos ‐7 2 Keyla Dos ‐27 1 Keyla Uno ‐7 5 Keyla Dos ‐8 2 Keyla Dos ‐28 2 Keyla Uno ‐8 5 Keyla Dos ‐9 2 Keyla Dos ‐29 2 Keyla Uno ‐9 5 Keyla Dos ‐10 2 Keyla Dos ‐30 1 Keyla Uno ‐10 5 Keyla Dos ‐11 2 Keyla Dos ‐31 2 Keyla Uno ‐11 5 Keyla Dos ‐12 2 Keyla Dos ‐32 1 Keyla Uno ‐12 5 Keyla Dos ‐13 2 Keyla Dos ‐33 2 Keyla Uno ‐13 5 Keyla Dos ‐14 2 Keyla Dos ‐34 1 Keyla Uno ‐14 5 Keyla Dos ‐15 2 Keyla Uno ‐15 5 Keyla Dos ‐16 2 Keyla Uno ‐16 5 Keyla Dos ‐17 2 Keyla Uno ‐17 5 Keyla Dos ‐18 2 Keyla Uno ‐18 5 Keyla Dos ‐19 2 Keyla Uno ‐19 5 Keyla Dos ‐20 2 Keyla Uno ‐20 5 Total 158

Within 30 days of the presentation date the concession holder must pay the required application fee. The Mining Court will order that the notarized copies of the Pedimento be inscribed and published. Once this order is received there is a 30-day period within which the concession will be inscribed by the mining registrar for the community in which the concession is situated and the inscription is published in the Official Mining Bulletin in the Province in which the concession is located. Upon completion of the inscription and publication, and payment of the application fee (required within 90 days of the Court’s order to have the concession inscribed and published), the concession holder must solicit the Sentencia Constitutiva. This solicitation is a written document accompanied by a plan depicting the location and dimensions of the concession, which is submitted to the Mining Court. Before filing the Solicitud de Sentencia Constitutiva the concession holder must also pay the Patente Proporcional. The Patente Proporcional is the annual concession tax adjusted for the number of days remaining in the current financial year that ends the last day of February.

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Figure 3: Keyla Uno Block

13 Las Palmas Property NI 43-101 November 2012 Chile Figure 4: Keyla Dos Block

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When received by the Mining Court, the solicitation passes once more to Sernageomin that then has 60 days to prepare a report approving or rejecting the concession on technical grounds. If rejected the concession holder then has another eight days to correct imperfections or omissions. Any interested the new concession covered a pre-existing concession).

Once the Sentencia Constitutiva is granted by the Mining Court, the concession holder must publish extracts from it in the Official Mining Bulletin on the first business day of any month within 120 days of the date of the Sentencia being granted. Following publication, the concession holder must deliver to Sernageomin the original plan of the concession and a copy of the Sentencia Constitutiva. Having completed all of these steps within 120 days of granting Sentencia Constitutiva, the concession holder will receive the constancia, which makes the inscription official.

Through this process a Pedimento evolves into a Concesión de Exploración. Exploration concessions are sometimes colloquially known as Pedimentos in Chile.

4.1.2 Exploitation Concessions

Exploitation concessions grant the holder the right to extract minerals from a concession. They last indefinitely as long as the annual license fees are paid. An exploration concession may be converted to an exploitation concession at any time during its two-year life or an exploitation concession may be applied for directly.

The process for acquiring exploitation concessions is as follows:

A declaration (called a Manifestación) requesting an exploitation concession is first submitted to the Mining Court. The Sentencia Constitutiva is granted following the presentation of the Manifestación to the Mining Court, payment of the application fee, inscription and publication of the Manifestación (as described above for Pedimentos) payment of the annual license fees and receipt of a technical report from Sernageomin approving the Manifestación.

Once the Manifestación has been inscribed and published, the concession holder has a period of between 200 and 220 days within which to request that the concessions be surveyed (a Solicitud de Mensura). Upon that request, the annual license fee must be paid. After publication of the notrized copy of the Solicitud de Mensura, passage of a 30-day period of opposition, from publication, and certification by the judge that no parties are opposed to the Mensura, the official survey can proceed.

Once the survey is completed the concession holder must submit documents and maps supporting the survey (Actas y Planos), which are presented to Sernageomin for technical review. This must be done within 15 months of the date of the original presentations of the Manifestación. Following receipt of a report by Sernageomin approving the Mensura, the Sentencia Constitutiva is issued, which is approved by the judge of the Actas y Planos. The concession holder then has 120 days to have the Sentencia and other relevant documents published in the Official Mining Bulletin. The right to mine does not exist until the Mensura is granted and approved.

Exploitation concessions are sometimes known colloquially in Chile as Manifestaciónes or Mensuras. Title to exploration concessions is perfected in a shorter period of time and the Las Palmas Property NI 43-101 November 2012 Chile annual license fees are 1/5 the cost of those for exploitation concessions (USD $1.65 per hectare for exploration concessions versus USD $8.27 per hectare for exploitation concessions). However, exploration concessions are temporary concessions and are not as secure as exploitation concessions.

4.2 Royalties, Encumbrances

4.2.1 Royalties State Royalties

In January 2006, a Mining Tax was introduced in Chile. This tax is levied upon operating revenue earned by mining enterprises. This tax is calculated according to two different arithmetic operations, one intended to determine the tax rate and other to determine the taxable basis. The specific tax rate will depend on the volume of sales made by the miner, converted into metric tonnes of fine copper. There is an exception for miners who make sales for less than the equivalent to 12,000 tonnes of copper and who will not pay this tax. For miners making sales the equivalent of more than 12,000 tonnes of copper, they will be subject to a progressive rate that ranges from 0.5% to 4.5%. Further, miners with sales greater than 50,000 metric tons of fine copper pay tax at a fixed rate of 5%. The tax base is comprised of the net operating income of the mining enterprise. The specific mining tax that is paid is deductible for Chilean income tax purposes. At a copper price of USD $10,000/t, the tax threshold is triggered at an annual sales level of USD$120 million. At a gold price of USD $1,500, this equates to an annual gold production of 80,000 ounces. Under the current mine plan,

4.3 Water Rights According Chilean Law

According to Chilean law, water is a national asset of public use and private entities and individuals may obtain water rights granted by the public authority to use it. These are special rights that entitle the holders to perpetually extract and use a certain flow of water from natural sources such as rivers, streams, or aquifers, and use it for any purpose, as established in the resolution granting the right, which must contain, among other elements, the flow granted (expressed in metric units and time), the watercourse of extraction, the intake point and the essential characteristics of the water right. Water rights are subject to a registered ownership system separated from real estate. The General Water Bureau (DGA) is the administrative authority in charge of granting water rights, conceding the authorizations related to their use or changes in their titles, supervising works or other intervention of riverbeds and other watercourses and providing special authorizations needed to intervene them, whether minor intake and restitution civil works or major hydraulic works such as dams, reservoirs, aqueducts, siphons, etc. Additionally, the DGA is responsible for gathering information regarding the use of water, the investigation and measurement of the water resources and the Public Water Cadastre.

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4.4 Legal Agreements

In a agreement dated October 10, 2012 between Juan Nelson Flores Carvajal and Alfredo Rovaldo Manfredi Aguirre Keyla Uno and Keyla Dos can be purchased for USD $2,500,000 under the flowing terms:

USD $500,000 upon signing of the agreement USD $250,000 in eight equal quarterly instalments due 90 days after the signing of the sales of a contract.

4.5 Environmental Liabilities

The company reports that it is unaware of any environmental liabilities on the property. During the site visit on November 4th, 2012, the author did not notice any existing obvious environmental liabilities related to the Las Palmas Property.

Evidence of historical mine working were noted during the site visit. Based on the location of the old tailings and the river there may be some issue of rain/ground that passes through the tailings may contaminate the river. It not known at this time if this is the case.

5 Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Las Palmas Property is readily accessible from the city of Coquimbo-La Serena or the city of Los Vilos. From Coquimbo-La Serena the project is accessible by driving south along the Pan American Highway for approximately 156 km until just before reaching kilometre 335, which is marked on the side of the highway. To reach the centre of the project, turn west and drive for approximately 2 km, there is one gate that must be open to access this road. To access the project from Los Vilos, drive north on the Pan American Highway (Ruta 5), approximately 80 km to just past kilometre 335.

The project is located near two major urban centres, Coquimbo-La Serena 156 km north and Santiago 295 km south. The population of Coquimbo-La Serena is approximately 412,000 inhabitants, and the population of Los Vilos is approximately 17,500 inhabitants. The region of Coquimbo has two ports, one located in the city of Coquimbo and a second operated by Minera Los Pelambres 3 km north of Los Vilos. The city of Coquimbo-La Serena is the general supply centre for the growing mining industry in the region.

The main operations in the Coquimbo Region are Los Pelambres located in the high cordillera operated by Antofagasta Minerals, and the Andacollo Mine operated by Teck Resources. Numerous small to medium scale mines are located in the region such as the Talcuna, Hermosa, Panucillo and the Sanchez deposits all owned and operated by Chilean companies. Gold has also been mined historically in the region at Barrick’s El Indio Mine that closed in 2002, and will soon be mined at Barrick’s Pascua Lama Mine. There are two smelters in the area in the cities of Ovalle and Cabildo, both approximately 100 km from the Casuto Project and operated by Enami.

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The Las Palmas Property is located within the central climate zone of Chile and has a steppe climate influenced by the Humboldt Current on the coast (Moreno and Gibbons 2007). The area is predominantly semi arid with limited rain of approximately 100mm per year, which is concentrated in the cold winter months (Moreno and Gibbons 2007). The cold Humboldt Current creates heavy fog along the coastline all year round. The annual average temperature is 14.7°C.

The Las Palmas Property covers undulating topography created by the evolution of the Casuto- Chigualoco River. Elevation ranges from 60 masl to 110 masl. Vegetation in the area is mostly thorny bushes and scrub. Most of the Casuto project is covered in small brush planted as sheep feed by farmers in the area

6 History Cautionary statement: Investors are cautioned that the potential quantity indicated below in the ALL of History Section of this report, which the author has been unable to verify and is not necessarily indicative of the mineralization on the Las Palmas Property that is the subject of the technical report, nor does it comply with the current NI 43-101 standard. It has been provided only for illustration purposes. At this time, there is insufficient public information to verify the information.

6.1.1 October 1904 Hartmann

Hartmann discussed the India central adit in his report of 1904. Hartmann indicated there were 4 tunnel on this claim, with the lowest one being at the bottom of the valley (approx. 100 m deep). In this tunnel there is a shaft that is 15-metre deep where massive pyrite 1.2 wide that assayed 30 grams per tonne.

6.1.2 September, 1927 Baeza, A

In 1927 there appears to have been an attempt to undertake a proposed partnership or corporation with included the properties that are subject of this report. The property was owned by Srs. Puyo Median, Achiardi and Lawrens could be purchased for one million two hundred thousand pesos. No geological information has been provide, Baeza, (1927).

6.1.3 September, 1931

Placer exploration was undertaken on shores of the ocean in the "Las Palmas" area. A shaft was sun on the beach that reached 2.50 metre and was abandoned due to flooding. Mr. Julius Kuntz, Geologist, illustrated the presence of gold with assays up to 3 grams per cubic metre in them.

6.1.4 March 14, 1932Gonzalez, A

At least 20 veins, the longest of which outcrops tor 22,960' (7,000 m). Widths vary from 6" (15 cm) to 47" (120 cm). Reported assays range from trace Au to 852 g/t. Omitting high samples the average is 47 g/t. Chamuscada Vein is reported to have a 40" (1 m) to 390" (10 m) silicified footwall whose assays average 20 g/t Au.

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The India vein zone approximately parallels the Chamuscada and is stated to outcrop for a length of 22,960' (7000 m). On the Leonidas claim it is developed for a length of 660' (200 m) and a depth of 190' (57 m). There are four veins of converging dips with widths of 24" (60 cm), 39" (100 cm), 39", and 16" (40 cm) respectively.

Figure 5: Historical Plan for India Central

1922 May After Lahaye Scale not known provided for illustration purposes

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6.1.5 August 2012, Garcia

In July 2012 Garcia (2012)a geologist visited the Las Palmas Property at the request of owner of the property. Garcia did not collect any rock samples during the site visit. Garcia noted that there has been no exploration work done on the property only exploitation. He recommends that in the future the use of certified laboratories (SGS, ALS, ACME) and also have the presence of a geologist for sampling, so that both sampling bias and the results will be minimal.

7 Geological Setting and Mineralization

7.1 Regional Geology After Ring et al 2012

In the Coastal Cordillera of central Chile the Eastern and Western Series are traditionally distinguished within the pre-Andean coastal accretionary belt (Aguirre, Hervé & Godoy, 1972; Hervé, 1988;Willner et al. 2005) as units of contrasting tectonic setting. Throughout central Chile, the Eastern Series structurally overlies the Western Series (Richter et al. 2007). The overlying Eastern Series first formed by frontal accretion to this accretionary wedge, and the underlying Western Series subsequently by basal accretion to the base of a late Palaeozoic to Triassic subduction complex (Hervé, 1988;Willner et al. 2005; Glodny et al. 2005; Richter et al. 2007). Both series consist dominantly of metagreywacke and metapelite, interpreted as continent-derived, turbidite successions (Hervé, 1988). Oceanic crust-derived rocks such as metachert, metabasite and serpentinite are largely absent in the Eastern Series, but typically occur as intercalations within the Western Series (Figure 6).

The metamorphic basement in north-central Chile at 31–32°S shows various levels of a fore-arc system including an accretionary wedge that is strongly overprinted by Mesozoic tectonic processes. Four units are usually distinguished (Rivano & Sepúlveda, 1983, 1985; Thiele & Hervé, 1984; Rebelledo & Charrier, 1994):

1. The Choapa Metamorphic Complex represents the structurally lowermost unit of the fore- arc system and comprises low-grade rocks (metagreywacke, greenschist) that are pervasively deformed by an originally sub-horizontal transposition foliation. The Choapa Metamorphic Complex can be correlated with the Western Series south of 34°S owing to similarities of lithology, structures, metamorphic grade and maximum depositional age (Willner et al. 2008).

2. The Arrayán Formation is dominated by very low-grade monotonous metagreywacke of turbiditic origin and correlates with the Eastern Series (Willner et al. 2008). The Arrayán Formation shows similar structures to the frontally accreted Eastern Series south of 34°S (Richter et al. 2007) such as chevron folds of bedding planes. A Late Devonian to Early Carboniferous biostratigraphical age is assigned to the Arrayán Formation (Rebelledo & Charrier, 1997). Dating the youngest detrital magmatic zircon with the U–Pb system, Willner et al. (2008) derived a maximum depositional age of 343 Ma for the Arrayán Formation. This is significantly older than the maximum depositional age of the Choapa Metamorphic Complex, suggesting that basal accretion followed frontal accretion in time in Chile, as has first been shown south of latitude 34°S by Richter et al. (2007).

20 Las Palmas Property NI 43-101 November 2012 Chile

3. The Huentelauquén Formation unconformably overlies the Arrayán Formation (Rebelledo & Charrier, 1994). It is a heterogeneous sedimentary sequence of shelf deposits comprising metasandstone with slate and metaconglomerate intercalations at the base overlain by thick polymictic metaconglomerate, platform limestone and metasandstone. Rivano & Sepúlveda (1983, 1985) assign a Late Carboniferous to Permian biostratigraphic age to the Huentelauquén Formation. Willner et al. (2008) concluded that deposition of the Huentelauquén Formation was concomitant with that of the Choapa Metamorphic Complex. The Huentelauquén Formation was deposited in a retrowedge position as already inferred by Thiele & Hervé (1984).

4. The non-metamorphic El Quereo Formation regionally overlies the rocks of the fore-arc system unconformably with a prominent breccia (Punta Tomás Breccia) at its base. The El Quereo Formation consists of fine- to coarse-grained sandstones with pelitic and conglomeratic intercalations. It has an Anisian (245–237 Ma) biostratigraphic age (Cecioni &Westermann, 1968). However, the non-fossiliferous Punta Tomás Breccia at the base may be somewhat older. Rb–Sr whole-rock isochron ages of 220 ±20 Ma for a gabbro and 200 ±10 Ma for a monzogranite are interpreted as intrusion ages during lithospheric extension at 31–32°S (Irwin et al. 1988). This magmatic event is concomitant with basin formation in central Chile related to the deposition of the El Quereo Formation (Charrier, Pinto & Rodríguez, 2008). Mafic and rhyolitic dykes intruded the entire sequence from Late Triassic to Early Cretaceous times. K–Ar ages of hornblende in mafic dykes yielded a huge spread in ages from 213–133 Ma (Irwin et al. 1988). During Jurassic to Early Cretaceous times, a prominent N–S-trending magmatic arc developed along the entire coast between 21°and 34°S (Parada et al. 2007). At 28°S to 32°S the metamorphic basement forms large inliers within this arc. In Mid Cretaceous times a prominent phase of E–W shortening affected the region at about 32°S (Arancibia, 2004).

21 Las Palmas Property NI 43-101 November 2012 Chile

Figure 6: Regional Geology

Schematic tectonic map of northern and central Chile showing faults related to the Atacama Fault System (after Charrier, Pinto& Rodríguez, 2008). (b) Geological map of the Chilean coastal range at 31–32◦ S (based on Rivano & Sepúlveda, 1983 andRebelledo& Charrier, 1994). Note that the Jurassic to Early Cretaceous magmatic arc has moved into the late Palaeozoic and Triassicaccretionary wedge.

22 Las Palmas Property NI 43-101 November 2012 Chile

7.2 Property Geology

Strong fracturing is present in the recent road cuts with east and northeast dips ranging between 45°and 70°.

From neighbouring properties that are exposed two mineralized structures, the first and most developed N140°direction with the second collapse sub-vertical EW direction. The first extends into the NW probably running parallel to the SW of the property boundary and within the property continues to limit NW. This band is related to mineralized dumps and old mine workings that run appear to parallel to the strip mineralized.

The gold mineralization appears to be controlled shear rate movements tensional fault. Filling faults parallel to the same direction as in tension to failure. The gold, but also have been observed sulphides (galena, pyrite) and quartz.

23 Las Palmas Property NI 43-101 November 2012 Chile

Figure 7:Property Geology

24 Las Palmas Property NI 43-101 November 2012 Chile

8 Deposit Type After Panteleyev, 1986

Many descriptions of epithermal-type deposits and districts accumulated and document the geometry, structural controls, and mineralogical variations of these deposits. Review articles describing "epithermal" deposits abound. The general characteristics are:

• The deposits form near the surface. Mineralization takes place from surface to a maximum depth of about 1,000 metres. Ore can be developed over a considerable strike length but is restricted in vertical extent to intervals varying from 100 to 1,000 metres. Average vertical range is about 350 metres and rarely exceeds 600 metres. Ore zones (ore shoots) bottom in either barren rock or pass downward into sub-economic zones containing base metal sulphides.

• Veins are the most common are host; they tend to branch or flare upward into complicated. wedge-like or cone-like features. Breccia zones, stockworksand fine-grained bedding replacement zones also occur; larger zones of these types may extend to tens of millions of tonnes in size.

• Deposits form in extensional tectonic settings, in areas with well-developed tension fracture systems and normal faults. The fracture systems are commonly, but not necessarily, associated with large-scale volcanic collapse structures.

• Mineralization commonly occurs in volcanic terranes with well-differentiated sub aerial pyroclastic rocks, and numerous small sub volcanic intrusions. Hot spring deposits and fumarolic volcanic phenomena are sometimes evident where centres of hydrothermal discharge have not been deeply eroded.

• Ore and associated minerals are deposited dominantly as open space filling with banded, crustiform, vuggy, drusy, colloform, and cockscomb textures. Repeated cycles of mineral deposition are evident. Ore minerals are generally fine-grained but commonly have coarse- grained, well-crystallized overgrowths of gangue minerals. Some replacement textures are evident; pseudomorphs of quartz after calcite are characteristic.

• Gold and silver are the main economic metals, and occur along with enhanced amounts of Hg, As, Sb and rarely TI, Se, and Te. Gold to silver ratios range widely; silver is typically more abundant than gold. The main minerals are native gold and silver, electrum, acanthite (argentite), and silver-bearIng arsenic-antimony sulphosalts. Telluridesare locally important. In addition, galena and sphalerite are common; copper occurs generally as chalcopyrite but in some deposits forms enargite. Cinnabar, stibnite, tetrahedrite, and selenides are important in some deposits.

• Gangue minerals are mainly quartz and calcite with lesser fluorite, barite, and pyrite. Chlorite, hematite, dolomite, rhodonite, and rhodochrosite are less common. Silica occurs in many varieties, most commonly as quartz or amethystine quartz, but also as opal, chalcedony, and cristobalite.

• Hydrothermal alteration is pronounced. Precious metal mineralization is frequently associated with silicification. Zones of silicification can be flanked by zones of illite-sericite

25 Las Palmas Property NI 43-101 November 2012 Chile

and clay alteration, all occurring within larger zones of propylitic alteration. At depth, vein structures contain adularia; near the surface, broad argillic zones, some containing alunite, can predominate. Some deposits have aluminous, advanced argillic alteration assemblages containing: kaolinite/dickite sericite, pyrophyllite, and andalusite with accessory diaspore, corundum, topaz, zunyite, lazulite or scorzalite, dumortierite, and futile or anatase.

26 Las Palmas Property NI 43-101 November 2012 Chile

•

Figure 8: Geological Model

Idealized section of a bonanza epithermal deposit. After Buchanan (1981), real systems are commonly more complex.

9 Exploration

There has been no exploration carried out on the property by Gran Pacific Minerals S.A. to date.

10 Drilling

There has been no drilling carried out on the property by Gran Pacific Minerals S.Ato date. Any historical drilling on the property is included in the history section of this report.

11 Sample Preparation, Analysis and Security

The author is unable to comment for the previous operators on the sample preparation, analysis, and security of samples due to the lack of recorded information. The author is also unable to comment the sample preparation, analysis and security for Gran Pacific Minerals S.A. due to the fact no samples have been taken by on the Property.

The author is satisfied with the adequacy of sample preparation, security and the analytical procedures used in the collection of the six(6) samples taken by the author during the site visit.There was no bias in the sampling program completed during the property visit, which 27 Las Palmas Property NI 43-101 November 2012 Chile was undertaken to test the repeatability of sample results obtained from previous sampling campaigns.

The author took samples on the site visit from four locations on the property and these were delivered to Acme Laboratories of Santiago, Chile (an accredited lab pursuant to NI 43- 101). All samples underwent the assay 2 package with includes 25 element Hot Aqua Regia digestion for base-metal sulphide and precious-metal ores. ICP-ES analysis and lead collection fire-assay fusion AAS finish for gold. See Table 4 for select analysis results.

At the current stage of exploration the geological controls and true widths of mineralized zones are not known and the occurrence of any significantly higher-grade intervals within lower grade intersections has not been evidenced.

The laboratories used for sample analysis are accredited and have their own Quality Control and Quality Assurance protocols for sample preparation and assaying. At this early prospective stage of the project, a rigorous quality control was not required.

12 Data Verification

During the site visit the author collected 6rock samples. All samples were located using a hand held GPS (see Figure 9 for sample locations, and Table 3 for sample details and descriptions). All samples were collected using a hammer and placed into poly ore bags, and taken by the author to Acme Laboratories Santiago, Chile (an accredited lab pursuant to NI 43-101).

The author visited the property on November 4th, 2012and examinations of several locations on the property were made to determine the overall geological setting.

During the site visit the author was assured that all samples that were collected were on the property in question. Upon returning to the office verify the locations of the concessions boundaries and the rock samples in a GIS program, it appears the three of the rock samples are just off Keyla Dos. The author received geo referenced tiffs from Chile in the South Americana Datum 56 zone 19 of Keyla Uno and Dos. The tiffs were used these to plot the concessions boundaries. Two of the rock samples plot less than 30 m from the concession boundary and one is less than 70 m form the concession boundary. The author has not been able to satisfactorily located the concession boundary for Keyla Dos. The geo- referenced tiffs do not appear to agree with the authors GPS location of the monument verse the geo referenced tiffs. The difference is the author GPS location approximately 60 m to the south and at this point in time is not sure which is the correct. To that end all samples have been included in this report.

Figure 9 illustrates rock samples on and off the concession Keyla Dos. The author would suggests that all the rock samples are potentially on the concession, however has been unable to verify this. To that point the author has included all the samples collected during the site visit.

The author took samples on the site visit from four locations and these were delivered to Acme Laboratories of Santiago, Chile(an accredited lab pursuant to NI 43-101).All samples underwent the assay 2 package with includes 25 element Hot Aqua Regia digestion for

28 Las Palmas Property NI 43-101 November 2012 Chile base-metal sulphide and precious-metal ores. ICP-ES analysis and lead collection fire- assay fusion AAS finish for gold. See Table 4 for select analysis results.

The author is satisfied with adequacy of sample preparation, security and the analytical procedures used in the collection of the 6 samples during the site visits. The author is unable to discuss sampling by Gran Pacific Minerals S.A. due to lack of information available on their sampling procedures and protocols.

13 Mineral Processing and Metallurgical Testing

Gran Pacific Minerals S.A. has undertaken no reported metallurgical testing.

14 Adjacent Properties

Gonzales (1923) reported at least 20 veins are in the Las Palmas Gold District with the longest that outcrops 22,960' (7,000 m) displaying width from 6" (15 cm) to 47" (120 cm) with reported assays range from trace Au to 852 g/t. When omitting high assays samples the average is 47 g/t. The Chamuscada Vein is also said to have a 40" (1 m) to 390" (10 m) silicified footwall whose assays average 20 g/t Au. See Figure 16 Grupo 2.

Cautionary statement: Investors are cautioned that the potential quantity indicated above, which the author has been unable to verify and is not necessarily indicative of the mineralization on the Las Palmas Property that is the subject of the technical report, nor does it comply with the current NI 43-101 standard. It has been provided only for illustration purposes. At this time, there is insufficient public information to verify the information.

The Chamuscada Mine

The Chamuscada Mine is one of the oldest mines the district t began work over 200 year ago. It is situated on a pronounced vein witch runs N55°W with a dip of 70 to 80 degrees to the west. The vein is composed of ferruginous quartz that is 1.5 metres wide and enriched with lead, and visible gold. The west all of the vein is formed of a dike of quartzite, which is called Farrellon, about 10 metres wide and a average grade of 10 g/t of Au. The strike length is about3 km. Olmedo(1931),see Figure 16 Grupo 2.

The Chamuscada vein outcrops for 9,840' (3,000 m) and on the on claim of the same name has a high-grade 20" (50 cm) lead and a 39"(1m) to 395" (10 m) siliceous footwall. The vein has been developed for a length, of 660' (200 m) and depth of 295' (90 m). One group of samples of the lead, left in pillars assayed from 5 g/t to 210 g/t with an average 128 g/t; another group assayed 100 g/t, 200 g/t, and 575g/t Au. Samples from the siliceous footwall gave 2 g/t to 27 g/t Au, with an average 25 g/t Au. Gonzalez, A. (1932), see Figure 16 Grupo 2.

29 Las Palmas Property NI 43-101 November 2012 Chile

Figure 9: Author Collected Samples

30 Las Palmas Property NI 43-101 November 2012 Chile

Table 3: Field description of the samples

Name WGS84E WGS84N Zone Comments Take in old workings, float that comes from one of the LP12-01 251023 6541232 19 old adits, quartz vein taken from trench that was excavated 6 months ago(no data), trench is approx. 30 m by 1.5 m, grab sample, LP12-02 250985 6541232 19 quartz vein Channel sample taken in quartz vein. Vein 10 cm at widest, sample taken parallel to the vein. Approx. 20 m LP12-03 251067 6541209 19 long strike Channel sample (75 cm), highly silicified, zone sheared LP12-04 251068 6541240 19 quartz vein (?), in old working 10 m underground. Grab, quartz vein, taken from pile that is currently being extracted (cobble pile), visible gold seen in the pile of LP12-05 251374 6541192 19 quartz samples, but not sampled. LP12-06 251396 6541187 19 Channel (30 cm) taken 30 m inside adit, quartz vein Monument 251094 6541393 19

Table 4: Select Assays Author Samples

Sample Au PPM Au GM/T Ag GM/T Pb % Zn % Ni % Co % Mn % Fe % LP12-01 0.048 <2 <0.01 <0.01 0.001 <0.001 <0.01 1.2 LP12-02 1.492 <2 <0.01 <0.01 0.003 0.001 0.02 4.46 LP12-03 >10.000 75 6 0.07 0.05 0.003 0.001 0.03 5.65 LP12-04 1.102 <2 <0.01 <0.01 0.005 0.001 0.02 2.38 LP12-05 >10.000 16.5 6 0.02 0.06 0.002 <0.001 0.01 1.33 LP12-06 7.584 <2 0.01 0.02 0.032 0.004 0.11 5.79

31 Las Palmas Property NI 43-101 November 2012 Chile

Figure 10: Rock Pile Outside Adit Figure 13: Visible Gold from Hand Milling

Figure 14: Adit on Site. Figure 11: Recent Road Cut

Figure 12:Onsite Ball Mill Figure 15: Property Monument

32 Las Palmas Property NI 43-101 November 2012 Chile

On the Pinta claim on the Chamuscada vein has a width of 118" (3 m) to 158" (4 m) that averages 25 g/t Au. Gonzalez, A. (1932),see Figure 16 Grupo 2.

The Mignon claims is on a cross vein to the Chamuscada vein and is developedby small workings. It is reported to be from 10" (25 cm) to 20" (50 cm) wide and samples taken to have reached as high as 675 g/t- Gonzalez, A. (1932).

The Constancia claim trends to the same vein as the India north and India central, which is the subject of this report. The vein is reported to be 79" (2 m) wide trace to 30 g/t Au and the entire vein from trace to 37 g/t Au. Gonzalez, A. (1932), see Figure 16 Grupo 1.

On the Ceniza and Quijudas claims are four parallel veins striking near the right angles to the India vein zone. All have been worked, with the vein being 6" (15 cm) to 10" (25 cm) wide with reported values of Au 55g/t, Gonzalez, A. (1932).

15 Other Relevant Data and Information

The author is currently unaware of any other information.

Las Palmas Property NI 43-101 November 2012 Chile

Figure 16: Las Palmas

Las Palmas Property NI 43-101 November 2012 Chile

16 Interpretation and Conclusions

The primary purpose of this technical Report is to summarize the historical activities conducted on the Las Palmas Property that is currently under option to Gran Pacific Minerals S.A. The author was asked to undertake a review of the available data and recommend (if warranted) specific areas for further work on the Las Palmas Property.

The property consists of 2 non-contiguous surveyed blocks claims totalling 158 hectares. The property is made up of two distinct blocks Keyla Uno and Keyla Dos. Keyla Uno. The property is situated 80 km north of the city of Los Vilos, 156 km south of the city of Coquimbo-La Serena and 295 km northwest of the city of Santiago.

Based on the projection of India vein, it appears the historical India Central claim and the India North claims are potentially on the property which the subject of this report.The India vein zone approximately parallels the Chamuscada. On the India Central claim the zone has one vein of 47" (120 cm) width. It has been developed by four adits to a depth of 330' (100 m), and length of 390' (120 ml. In 1897-1899 produced 35 g/t Au. A 50 tonne 15 m shaft sunk on the vein the gulch bottom cut pyritic ore which 30 g/t Au.

Cautionary statement: Investors are cautioned that the potential quantity indicated above is not NI43-101 complaint and has not been verified by the author and may not be indicative of the property that is the subject of this report. It has been provided only for illustration purposes. At this time, there is insufficient public information to verify the information.

The available data suggests that much of the100-year history of Keyla Dos has been focused on extraction of gold from the ground. The exact amounts are not known, this could be due to the lack of records or the lack of significant gold, and it is unknown at this point. The data provided does not show any type of geological investigations or detailed analysis of the property to date

The area and adjacent properties do appear to have some type gold mineralization however the grade, volumes have not been determined. The author did observe free-milling gold as demonstrated by an artisanal miner.

The area warrants a detailed geological mapping that would include: structural analysis, satellite, air photo interpretation, and establishing concession boundaries. The mapping should include an aggressive sampling program including any of the open adits to date.

After the geological mapping if warranted the re-opening and sampling any known adits.

Las Palmas Property NI 43-101 November 2012 Chile

17 Recommendations

The suggested Phase 1 work program includes compilation of all the historical geological, geophysical and geochemical data available for the Property, and rendering this data into a digital database into GIS formats for further interpretation. This work will include georeferencing historical survey trenches and detailed property geological maps.

The fieldwork component of this phase will include detailed geological mapping that would include: structural analysis, satellite, air photo interpretation, and establishing concession boundaries. The mapping should include an aggressive sampling program including any of the open adits to date.

Proposed Budge Phase I: Item Unit Rate Number of Units Total ($) Geological mapping, 2 person crews days $1,100 50 55,000 Total 4 people Assaying rock samples sample $45 500 22,500 Accommodation and Meals days $200 100 20,000 Vehicles: 2 – 4x4 trucks days $300 30 9,000 Supplies and Rentals Lump Sum $3000 3000 GIS Technician days $450 15 6,750 Satellite data 5000 Maps production and Report Lump Sum $10,000 1 10,000 Sub Total 131,250 Contingency of 15% 19,687 TOTAL (USD) 150, 938

Proposed Budge Phase II:

After the geological mapping if warranted the re-opening and sampling any known adits at an estimated cost approximately USD $200,000.

Las Palmas Property NI 43-101 November 2012 Chile 18 References

AGUIRRE, L., HERVÉ, F. & GODOY, E. 1972. DISTRIBUTION OF METAMORPHIC FACIES IN CHILE: AN OUTLINE. KRYSTALLINIKUM 9, 7–19.

ARANCIBIA, G. 2004. MID-CRETACEOUS CRUSTAL SHORTENING: EVIDENCE FROM A REGIONAL-SCALE DUCTILE SHEAR ZONE IN THE COASTAL RANGE OF CENTRAL CHILE (32◦ S). JOURNAL OF SOUTH AMERICAN EARTH SCIENCES 17, 209–26.

BUCHANAN, L., J., 1981, PRECIOUS METAL DEPOSITS ASSOCIATED WITH VOLCANIC ENVIRONMENTS IN THE SOUTHWEST, IN DICKINSON, WA. AND PAYNE, W. D., EDITORS. RELATIONS OR TECTONICS TO ORE DEPOSITS IN THE SOUTHERN CORDILLERA: ARIZONA GEOLOGICAL SOCIETY, DIGEST, V. XIV, P 237-262

CECIONI, G.&WESTERMANN, G. 1968. THE TRIASSIC/JURASSIC MARINE TRANSITION OF COASTAL CENTRAL CHILE. PACIFIC GEOLOGY 1, 41–75

CHARRIER, R., PINTO, L. & RODRÍGUEZ, M. P. 2008. CHAPTER 3 TECTONOSTRATIGRAPHIC EVOLUTION OF THE ANDEAN OROGEN IN CHILE. IN THE GEOLOGY OF CHILE (EDS T. MORENO & W. GIBBONS), PP. 21–114. LONDON: THE GEOLOGICAL SOCIETY.

BAEZA, A (1927) PROPOSED PARTNERSHIP OF CORPORATION, INTERNAL COMPANY DOCUMENT, SOURCE UNKNOWN

GARCIA, H, (2012) REPORTE VISITA PROPIEDAD KEILA IV REGION, CHILE REPORTE TECNICO COMPANY INTERNEL REPORT

GONZALEZ, A (1932) LAS PALMAS GOLD DISTRICT, INTERNAL COMPANY DOCUMENT, SOURCE UNKNOWN

HERVÉ, F. 1988. LATE PALEOZOIC SUBDUCTION AND ACCRETION IN SOUTHERN CHILE. EPISODES 11, 183–8.

HARTMANN, F. (1904) BRIEFDESCRIPTION OF THE GOLD MINING DISTRICT " LAS PALMAS”, COMPANY INTERNAL DOCUMENT SOURCE UNKNOWN

IRWIN, J. J., GARCÍA, C., HERVÉ, F. & BROOK, M. 1988. GEOLOGY OF PART OF A LONG-LIVED DYNAMIC PLATE MARGIN: THE COASTAL CORDILLERA OF NORTH-CENTRAL CHILE, LATITUDE 30◦51_–31◦–32◦ S. CANADIAN JOURNAL OF EARTH SCIENCES 25, 603–24.

LAHAYE, E., (1922) REPORT IN MINING CENTERS LAS PALMAS AND HOLY SPIRIT, SOURCE UNKNOWN.

OLMEDO, D.P, (1931) REPORT ON THE GOLD MINES "LA IGLESIA AND "CHAMUSCADA" SITUATED IN THE LAS PLAMAS FARM IN ILLAPLE, COQUIMBO, SANTIAGO, SOURCE UNKNOWN

UNKNOWN (1931) TRANSLATION, GOLD PLACERS, INTERNAL COMPANY DOCUMENT. SOURCE UNKNOWN.

MORENO, T. AND GIBBONS, W., 2007, THE GEOLOGY OF CHILE: THE GEOLOGICAL SOCIETY PUBLISHING HOUSE, 397 P.

PANTELEYEV, A., 1986, ORE DEPOSITS # 10, A CANADIAN CORDILLERAN MODEL FOR EPITHERMAL GOLD AND SILVER DEPOSITS. GEOSCIENCE CANADA, VOLUME 13, NUMBER 2

PARADA, M. A., LOPEZ-ESCOBAR, L., OLIVEROS, V., FUENTES, F., MORATA, D., CALDERÓN, M., AGUIRRE, L., FÉRAUD, G., ESPINOZA, F., MORENO, H., FIGUEROA, O., MUNOZ BRAVO, J., TRONCOSO VÁSQUEZ, R. & STERN, C. R. 2008. CHAPTER 4 ANDEAN MAGMATISM. IN THE GEOLOGY OF CHILE (EDS T. MORENO & W. GIBBONS), PP. 115–46. LONDON: THE GEOLOGICAL SOCIETY.

RING, U., WILLNER, A., P., LAYER, P., W., AND RICHTER, P., P., JURASSIC TO EARLY CRETACEOUS POSTACCRETIONAL SINISTRAL TRANSPRESSION IN NORTH-CENTRAL CHILE (LATITUDES 31–32◦ S). GEOL. MAG. 149 (2), 2012, PP. 208– 220.CAMBRIDGE UNIVERSITY PRESS 2011

RICHTER, P., RING, U., WILLNER, A. P. & LEISS, B. 2007. STRUCTURAL CONTACTS IN SUBDUCTION COMPLEXES AND THEIR TECTONIC SIGNIFICANCE: THE LATE PALAEOZOIC COASTAL ACCRETIONARY WEDGE OF CENTRAL CHILE. JOURNAL OF THE GEOLOGICAL SOCIETY, LONDON 164, 203–14.

RIVANO, S. & SEPÚLVEDA, P. 1983. HALLAZGO DE FORAMINÍFEROS DEL CARBONÍFERO SUPERIOR EN LA FORMACIÓN HUENTELAUQUÉN. REVISTA GEOLÓGICA DE CHILE 19–20, 25– 35.

RIVANO, S. & SEPÚLVEDA, P. 1985. LAS CALIZAS DE LA FORMACIÓN HUENTEAUQUÉN: DEPÓSITOS DE AGUAS TEMPLADAS A FRÍAS EN EL CARBONÍFERO SUPERIOR-PÉRMICO INFERIOR. REVISTA GEOLÓGICA DE CHILE 25–26, 29– 38

Las Palmas Property NI 43-101 November 2012 Chile WILLNER, A. P., THOMSON, S. N., KRÖNER, A., WARTHO, J. A., WIJBRANS, J. & HERVÉ, F. 2005. TIME MARKERS FOR THE EVOLUTION AND EXHUMATION HISTORY OF A LATE PALAEOZOIC PAIRED METAMORPHIC BELT IN CENTRAL CHILE (34◦–35◦30´ S). JOURNAL OF PETROLOGY 46, 1835– 58.

WILLNER, A. P., GERDES, A. & MASSONNE, H. -J. 2008. HISTORY OF CRUSTAL GROWTH AND RECYCLING AT THE PACIFIC CONVERGENT MARGIN OF SOUTH AMERICA AT LATITUDES 29◦– 36◦ S REVEALED BY A U-PB AND LU-HF ISOTOPE STUDY OF DETRITAL ZIRCON FROM LATE PALEOZOIC ACCRETIONARY SYSTEMS. CHEMICAL GEOLOGY 253, 114–29.

REBELLEDO, S. & CHARRIER, R. 1994. EVOLUCIÓN DEL BASAMENTO PALEOZOICO EN EL ÁREA DE PUNTA CLADITAS, REGIÓN DE COQUIMBO, CHILE (31–32◦ S). REVISTA GEOLÓGICA DE CHILE 21, 55–69

RIVANO, S. & SEPÚLVEDA, P. 1983. HALLAZGO DE FORAMINÍFEROS DEL CARBONÍFERO SUPERIOR EN LA FORMACIÓN HUENTELAUQUÉN. REVISTA GEOLÓGICA DE CHILE 19–20, 25– 35.

THIELE, R. & HERVÉ, F. 1984 SEDIMENTACIÓN Y TECTÓNICA DE ANTEARCO EN LOS TERRENOS PREANDINOS DEL NORTE CHICO, CHILE. REVISTA GEOLÓGICA DE CHILE 22, 61–75.

Las Palmas Property NI 43-101 November 2012 Chile 19 Date and Signature Page

I, Derrick Strickland, do hereby certify as follows:

That I am a consulting geologist, at 910-475 Howe Street, Vancouver, B.C.

This certificate applies to the report entitled “NI 43-101 Technical Report on the Las Palmas Property 71°37'17"W and 31°14'18"S Coquimbo, Choapa Province,Chile dated November 24th, 2012."

That I am a graduate of Concordia University of Montreal, Quebec, with a B.Sc. in Geology, 1993.

That I am a Practicing Member in good standing of the British Columbia Association of Professional Engineers, Geologists and Geophysicists, license 278779 since 2003. That I have been practicing my profession continuously since 1993, and have been working since 1986 in mineral exploration, That I have been practicing my profession continuously since 1993, and have been working in mineral exploration since 1986 in gold, precious, base metal, and platinum and palladium, mineral exploration throughout, throughout Canada, United States, China, Bolivia, West Africa, Chile, and Pakistan.

I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101) and certify that by reason of my education, affiliation with a professional organization (as defined in NI 43- 101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

I am responsible for all sections of the report entitled “NI 43-101 Technical Report on the Las Palmas Property 71°37'17.04"W and 31°14'18"S Coquimbo, Choapa Province Chile dated dated November 24th, 2012." I visited the property on November 4th, 2012. I have relied in the information from byLuis Fernando Ureta Álamos a lawyer for mineral title.

I am not aware of any information or omission of such information that would make this Technical Report misleading. This Technical Report, the contains available scientific and technical information that is required to be disclosed to make the technical report not misleading

I am independent of Gran Pacific Minerals S.A. in applying all of the tests in section 1.5 of National Instrument 43-101. For greater clarity, I do not hold, nor do I expect to receive, any securities of any other interest in any corporate entity, private or public, with interests in the Las Palmas Property, which is the subject of this report or in the properties themselves, nor do I have any business relationship with any such entity apart from a professional consulting relationship with the Companies, nor do I to the best of my knowledge hold any securities in any corporate entity within a two (2) kilometre distance of any part of the subject Las Palmas Property.

I have read National Instrument 43-101 and Form 43-101F, and attest that the Technical Report has been prepared in compliance with that instrument and form.

I consent to the filing of the Technical Report with any stock exchange or other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible to the public.

Las Palmas Property NI 43-101 November 2012 Chile

20 SIGNATURE PAGE Dated this 24th Day of November 2012

Signature of Qualified Person Derrick Strickland P.Geo.